Évora InovCity

EDP Distribuição is the Portuguese Distribution System Operator …

Commercialization/ RetailersGeneration DistributionTransmission

Regulated

Concessions

•Low Voltage Concessions

Granted by the 278 Municipalities for a period of 20 years (next concessions are subject to public tender)

•High/Medium Voltage Concession

Granted by the government until 2043

EDP Distribuição Main Figures 2014

Net Assets (€ Millions) 3.000

Substations (#) 416

MV/LV Substations (#) 66.719

HV/MV Network (103km) 82

LV Network (103km) 142

Customers (106#) 6,1

Distributed energy (TWh) 44

The power sector is key to EU ambitious climate goals, which can only be achieved by increasing electrification of demand and decarbonisation of the sources...

5,6

1990 2008-2012 2020e 2050e

International agreement

Kyoto Protocol

-8% -20% -80 a

-95%

Energy & Climate Package

G8 Summit in Italy

Emissions targets in EUGtCO2e

Emissions reduction as a function of the share of electricity in final energy demand

% CO2 emissions reduction

% electricity in final energy demand

Emissions factor

Zero

Today´s

Increase electrification• Transport (EV)• H&C• Energy efficiency

Decarbonise power• Renewables• Nuclear• Carbon capture and storage

www.omie.es/inicio

Data from 3rd March 2014, www.centrodeinformacao.ren.pt

Energy Load flow invertionimpacts Operation and protection

configuration;

RES intermitenceimpacts a stable and convenient

voltage profile;

LV gridimpacted by microgeneration onvoltage even for reduced intalled

power .

Portugal achieved 70% of Renewable energy in the first quarter of 2014, and energy spot price was around ZERO for about a week…

>100.000[50.000:100.000[[10.000:50.000[[5.000:10.000[]0:5.000[0

Installed Capacity (kVA)

(1) “Special Regime Generation” (SRG) includes renewables sources as wind farms, mini hydro (<10MW), micro generation (up to 5,75 kW) and cogeneration. About 5.850 MVA installed capacity

High consumption density asymmetries

~80% of renewable dispersed generation connected to Distribution Network 1

… which can bring new challenges to the DSO, such as a large and growing amount of renewable energy integration injected far from consumption …

DSO

TSO

Renewables connection to DSO and TSO (% of annual peak power)

81%

… with intermittency and uncertainty. This will call for FLEXIBILITY in the layer between supply and demand: the GRID!

0 2 4 6 8 10 12 14 16 18 20 22 24

Time

0.00%

0.01%

0.02%

0.03%

0.04%

0.05%

0.06%

0.07%

1 1001 2001 3001 4001 5001 6001 7001 8001

Solar

Hydro

Wind

Supply patterns %

Demand pattern GW

Time

Future Demand pattern GW

Time

•Control;•DG Mix Management;•Storage Back-up; •Energy Pricing;•DSM/DR;•….

Question: How can Supply match Demand?

Answer: Smarter Grids!

Quality of Service

Operational Efficiency

Renewables and Distributed Generation

New Business Models and Emerging Technologies (e.g. EV)

Energy efficiency

Historical Challenges New Challenges

Making Smart Grids key to meet DSO new challenges, e.g., distributed generation, increased energy efficiency and new business models.

Évora InovCity was chosen to implement the InovGrid project …

1. Évora municipality:

• 54.000 inhabitants

• 1.307 km2 of area (urban and rural)

2. The project includes:

• 30k EDP Boxes and 341 DTCs

• Integration of IT systems

• Communications infrastructures

• New services and products

3. Involvement of the major players of the municipality

4. Coordination with the national electric vehicle charging network

Évora InovCity has the dimension, the network diversity, the customers and the context to support a thorough evaluation of the solution

The city of Évora is a Unesco World Heritage Site

… where the Electric Vehicle (EV) national charging network (MOBI.E) is already present with several charging points in the Grid and …

• Évora is part of the pilot group of 25 Cities

• EDP is deploying ~20 charging points in Évora

• Charging points locations:• Main highways

• Streets

• Public parking lots

• Service stations

• Airports

• Hotels

• Shopping centers

National EV integration timeline

Pilot

(25 Municipalities)

Subsequent phases

(National)

320 Charging points

2010 2011 2012 ... ... 2020

1.350 Charging points

Inauguration of first CP, 29th of June 2010

Network of first 25municipalities

… EDP developed the InovGrid architecture, focused on customers’ participation and in a network integrated infrastructure…

Micro Generation Integration

EV Charging

System Integration and Cyber-security

Technical + Commercial Information Storage

and Management

Energy Efficiency Services

New Innovative Tariffs, Products and Services

LV Network GIS and WFM

MV Network Automation and Remote Control

Storage + Distributed Generation

Quality of Service LV/MV dispatch

Customers

VHV / HVSubstation

HV Network MV Network LV NetworkMV / LV

SubstationHV / MV Substation

Public Lighting Remote Management

Active and Intelligent Network Management

• EB: EDP Box, installed at customers premises• DTC: Distribution Transformer Controller,

Installed at MV / LV substations

WAN HAN

EBCentral Systems

LAN

DTC

Wide Area Network Local Area Network Home Area Network

… including the EDP Box, connected with In-Home Displays (IHD) and efficiency software in PC/PDA to selected customers...

ZigBee

WiFi

HAN

EDP Box

Display

PC / PDA

AcademyUtilities

Industry ICT

… an ecosystem of Partnerships with large and diversified European base …

• Consumption reduction1 3.9% of comparing the test group with the control group (*)

• Invoicing based on real consumption, with permanent access to historical consumption patterns in the EDP Online portal, and exposed to project communication and recommendations about energy efficiency.

• Results are showing persistency 2.

1

2010 2011 2012

Évora

Control Group

Consumption per consumer from 2010 to 20121

Inovcity Effect

-3.9%-3.8%

(1) Results from March 2011 to February 2013.

(2) From 2010 to 2011 global energy consumtion was reduced due to macroeconomic backgrous, however the effect was excluded between control and test groups

• Consumption reduction of 5.3% in the group of consumers with special tariffs, alerts and customized reports (b);

• Consumption reduction3 of 6.6% in the group of consumers with displays / monitoring systems(c).

2

Alerts Type 2 (SMS, email)Load Patterns

PC Software + Display

Sofisticated Consumption Monitoring Equipment

Alerts Typ3 1 (SMS, email)

Display Typo 2

Progressive Tariffs

Co

nsu

mp

toin

Leve

l 1Le

vel 2

Leve

l 3

Contracted Power (kVA)

Level 2 Level 3Level 1

Display Type 1+

ToU Tariffs

… performing a large study on retail customers’ interaction with the Smart Grid …

Inovcity Effect (Évora Population) New Products / Services (test group)

(3) Results comparing 2012 vs. 2010.

(a) Error margin 2.1% for a confidence interval of 95% (b) Error margin 5,2% for a CI 95% (c ) error margin of 4% for a CI 95%

… and achieving even higher gains in larger customers in Évora.

Main Conclusions

• Small reductions in consumption altogether have a large impact in the monthly bill for high consumption LV customers

• Close interaction with consumers (in particular the facilities manager) is key to ensure effective consumption reduction

• “Data coming from EDP, particularly the visualinformation, has been extremely useful andinteresting for all the Museum team”

• “There was a major concern of involving all the 17people that work here, and making them aware ofthe energy consumption reduction topic”

• “We started by solving the night problem, (…) wechose to switch on the lights step by step, insteadof all at the same time, when we needed to walkaround the museum at night.”

• “Natural light in the building was maximized inorder to reduce consumption”

Energy efficiency gains between 6% and 24%, in high consumption LV consumers.

0

10

20

30

40

50

00:1

5

01:4

5

03:1

5

04:4

5

06:1

5

07:4

5

09:1

5

10:4

5

12:1

5

13:4

5

15

:15

16:4

5

18:1

5

19:4

5

21:1

5

22

:45

kW

Horas

Évora Museum

Média das 4ª feiras Maio

Média das 4ª feiras Outubro

~ 16%

• Efficiency in consumption

• Technical losses

• Commercial losses

• Efficiency in technical operations

• Efficiency in commercial operations

• Technical Quality of Service

• Commercial Quality of Service

• Micro-generation

• Electric vehicle

Energy

efficiency

Operations

efficiency

Quality of

Service

Emerging

technologies

• Consumption reduction• Peak to non-peak transfer• Technical losses reduction• Commercial losses reduction• Energy recovered• Fraud detection rate

• O&M costs reduction • Meter reading and work orders cost

reduction• Work order average time reduction

• Interrupt of supply reduction (duration and frequency)

• Quality of supply• Customer satisfaction

• Increase in micro-generation integration

• EV integration

Validating Smart Grids drivers and assessing results with KPIs...

Value Drives KPIs

Energy

Efficiency

Operations

Efficiency

Quality of

Service

Emerging

Technologies

4% Efficiency Consumption improvement

90% Remote Work Orders Success Rate

12.3% Outages Field Teams Incidents Reduction

66 % Micro Generators Growth (2010/2012)

Évora InovCity

… having achieved significant outcomes in Smart Grid key areas...

•Project Kick-Off

•System Architecture Developed

2007: Smart Grids first steps and Inovgrid has a pioneer project in the European landscape

•National Funding (QREN Program)

•Original Consortium •First Components Installed (EDP Box, DTC)

•Évora InovCity

• InovGrid JRC Reference Project

•Scale up 7 Cities

•39 Initiatives

•Visitor 1.000 InovCity

•+3.9% Energy Efficiency

•Utility of the year Award

•AwardEEGI Core Label

•1st Remote Operations

Today: Smart Grids are in every DSO agenda and InovGrid is a reference with a proven track record

EU/ Climate Action: A world like you, with a climate you like. Évora inovcity

… with sustained evolution and international recognition…

…and expanding to 7 new locations, leveraging the Évora experience.

2010 2011 2012 2013 2014 2020...

InovGrid deployment schedule

30k EBs(Évora InovCity)

+100k EBs(7 new locations)

+200k EBs(keep expansion)

6M EBs(full rollout)

Rollout date tbd

• New technologies (PLC PRIME, RF Mesh)• Different social and environmental characteristics• Different grid conditions• New smart grids applications• Increasing business process integration

Government decision pending

EDP is actively participating in several international forums and Europeanprojects, contributing for sharing and replicating knowledge and solutions in EU…

SG Task-Force

Smart GridsRenewables

Aggregators

Consumers

Distributed Resources

Storage

Metering

Security

Electrical Vehicle

Business Case

Single Case Study

Smart MeteringMandate M/441

Smart GridsMandate M/490

Smart Cities

Micro Generation

S3C

SuSTAINABLE 1

Meter-ONReservices

E-Balance

Sensible

Grid+

EcoGrid

(1) FP7 Project Coordinated by EDP Distribuição

(www.sustainableproject.eu)

evolvDSO

PlanGridEV

InSmart

UPGRID

… in projects such as SuSTAINABLE 2013-2015, that is coordinated by EDP and will further leverage InovGrid developments in the EU Project Family.

R. Adam Olszewski

SuSTAINABLE project will develop and demonstrate a new operation paradigm, leveraging information fromthe Smart Grid infrastructure and short-term localized predictions to manage distribution systems in a moreefficient and cost-effective way, enabling a large-scale deployment of variable distributed generation.

www.sustainableproject.eu

www.facebook.com/sustainableproject

Customer within-home display

Micro Producers

Erse - Prince Charles-China Three Gorges-República Checa-Lógica-Colômbia-Eandis Bandeirante-Corpoelect-DR ENER CE-Zhuai-França-Roménia-Ilhas Montanha-Macau Fleming-DRC -Universidade Unioeste-Fundação Getúlio Vargas- Japão-Indonésia-ADREM-ERDF-ABDI-Sentec-Basildon Council-Tuas Power-Australia -Qren – Novabase-Moçambique-Singapura……

More than 2200 visitors from over 30 nationalities came to Évora …

… feeling the strong involvement of local stakeholders and population.

inovcity website and local social networks and

blogs and Intranet news

3D Model at inovcity Store in City Centre

Test of new products and services

In-home displays in stores at the historical centre

Smart Grids conferences and meetings in Évora

Monthly Newsletter to all Energy related

professionals in Évora region

Collaboration with Évora University

Involvement of the Town Hall and other local public

uthorities

Business Fairs Presence in the local press

Client research and Social

studies

Energy Day

Mailing and information to Évora Clients

Lessons Learned ...

• Focus on value creation for customer, involving local stakeholders activeparticipation …

• Develop Évora – the 1st Iberian InovCity, as a project commercially testedfuture-proof solution ...

• Align EDP’s “Smart Grid Thinking”, with the world smart grids trends as areference in the Sector…

• Aim at the European energy goals, as key to more efficiency, renewables andelectric vehicle, following international standards with interoperablesolutions ...

• Promote international partnerships for smart grid new solutions ...

InovCity Évora, Portugal

Visit us at:

www.inovgrid.pt

pedro.godinhomatos@edp.ptricardojorge.santos@edp.pt

Welcome to Évora InovCity!www.inovgrid.pt